Align Technology, Inc. stock research
FY2024 Q3
Align Technology (ALGN) Gross Margin — Quarter Ended Sep 30, 2024
This quarter's gross margin improved compared to the same quarter last year, driven by a higher gross profit relative to revenue. However, compared to the previous quarter, the gross margin weakened as revenue declined more than the cost of revenue.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2024 Q3
This quarter's gross margin improved compared to the same quarter last year, driven by a higher gross profit relative to revenue. However, compared to the previous quarter, the gross margin weakened as revenue declined more than the cost of revenue.
- The year-over-year improvement in gross margin was primarily due to a lower cost of revenue relative to revenue. Sequentially, the margin decline reflected a proportionally larger decrease in revenue compared to cost of revenue.
- Revenue and gross profit were higher than the same quarter last year but lower than the previous quarter. Gross margin was higher year-over-year and slightly lower sequentially.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
69.7%
Gross profit
$681.8M
Revenue
$977.9M
Cost of revenue
$296.1M
Quarter-over-quarter change
-0.5 pts
Year-over-year change
+0.7 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Dec 31, 2023 | $956.7M | $669.5M | $287.2M | 70.0% |
| Mar 31, 2024 | $997.4M | $697.8M | $299.6M | 70.0% |
| Jun 30, 2024 | $1.0B | $722.6M | $305.9M | 70.3% |
| Sep 30, 2024 | $977.9M | $681.8M | $296.1M | 69.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
-0.5 pts
Year-over-year change
Sep 30, 2023
+0.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The year-over-year improvement in gross margin was primarily due to a lower cost of revenue relative to revenue. Sequentially, the margin decline reflected a proportionally larger decrease in revenue compared to cost of revenue.
Revenue and gross profit were higher than the same quarter last year but lower than the previous quarter. Gross margin was higher year-over-year and slightly lower sequentially.
Monitor the trend in cost of revenue relative to revenue, as it is a key factor influencing gross margin.